Naira Reaches Two-Year High as Currency Gains Sweep All Forex Markets
ABUJA — The Nigerian naira surged to a two-year high against the US dollar on Tuesday, February 17, 2026, marking a significant period of appreciation across both official and parallel foreign exchange markets.
According to data from the Central Bank of Nigeria (CBN), the naira strengthened to ₦1,344 per dollar in the official Nigerian Foreign Exchange Market (NFEM), a notable improvement from the ₦1,358 recorded last weekend. This rally has successfully anchored the official rate well below the ₦1,400 threshold for over two consecutive weeks.
Market Performance Summary
The currency's performance across different segments highlights a broad-based recovery:
- Official Market (NFEM): Closed at ₦1,344/$1, gaining approximately ₦14 from the previous weekend.
- Parallel Market: Strengthened sharply to trade between ₦1,390 and ₦1,400/$1 in major hubs like Lagos and Abuja, down from ₦1,438 just days prior.
- Exchange Rate Gap: The spread between official and black market rates narrowed to roughly ₦49, down from over ₦70 last week, signaling a move toward market convergence.
Drivers of Appreciation
Financial analysts attribute this "bullish momentum" to several strategic factors:
- Rising External Reserves: Nigeria's foreign reserves climbed to $47.02 billion as of early February, the highest level in nearly eight years, providing a solid buffer for the local currency.
- Increased Liquidity: The CBN recently reopened "dollar taps" for licensed Bureau De Change (BDC) operators, approving weekly FX sales of up to $150,000 to ease retail shortages.
- Domestic Refining: The steady ramp-up of the Dangote Refinery has significantly reduced the demand for foreign exchange previously needed for petroleum imports.
- Improved Exports: A surge in both crude and non-oil export receipts has bolstered the nation's trade balance and FX inflows.
Market participants expect further stability as the CBN prepares to release new trading guidelines for BDC operators later this week.
Would you like a breakdown of how these exchange rate changes might impact the prices of imported consumer goods this month?
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